/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160203.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, February 3, 2016, Vol. 17, No. 23 Headlines A R G E N T I N A EMPRESA DISTRIBUIDORA: Moody's Raises CFR to Caa2; Outlook Pos. B R A Z I L BRAZIL: Deficit, Stimulus Show Growth Challenges Says Fitch BRAZIL: Olympic Costs Up Another $100 Million on Electric Bills OAS GROUP: Brookfield Asset Withdraws Offer to Buy Invepar Stake USINAS SIDERURGICAS: Sticks With Plan to Cut 4,000 Jobs at Mill C A Y M A N I S L A N D S CATALIX CAPITAL: Members Receive Wind-Up Report COPELLA INVESTMENT: Shareholders Receive Wind-Up Report COPELLA MASTER: Shareholders Receive Wind-Up Report COPELLA OFFSHORE: Shareholders Receive Wind-Up Report CQS CAPITAL: Members Receive Wind-Up Report CQS SELECT FEEDER: Members Receive Wind-Up Report CQS SELECT MASTER: Members Receive Wind-Up Report CRYSTAL FUND: Shareholders Receive Wind-Up Report MCGRAW-HILL: Shareholder Receives Wind-Up Report NEOTERIC LIMITED: Shareholders Receive Wind-Up Report PERSISTENT EDGE: Members Receive Wind-Up Report PINK GINGER: Shareholder Receives Wind-Up Report PRIVATE EQUITY: Shareholders Receive Wind-Up Report PROYA INTERNATIONAL: Members Receive Wind-Up Report SAB OVERSEAS VI: Shareholders Receive Wind-Up Report SAB OVERSEAS VII: Shareholders Receive Wind-Up Report TFO POOLING I: Shareholders Receive Wind-Up Report VALORA INVESTMENT: Members Receive Wind-Up Report M E X I C O COBRE DEL MAYO: Fitch Cuts Issuer Default Rating to 'RD' CONTROLADORA MABE: Fitch Affirms 'BB+' Issuer Default Ratings MEXICO: Fitch Says Oil Drop Will Hurt Locals Less Than 2009 Bust P E R U INRETAIL CONSUMER: S&P Revises Outlook to Stable & Affirms BB+ CCR P U E R T O R I C O PUERTO RICO: Faces Prospect of Financial Control Board SPANISH BROADCASTING: BlackRock Holds 5.2% of Class A Shares U R U G U A Y ACI AIRPORT: S&P Affirms 'BB+' Rating; Outlook Remains Stable X X X X X X X X X YAHOO! INC: Shutting Offices in Mexico, Argentina to Trim Costs - - - - - ================= A R G E N T I N A ================= EMPRESA DISTRIBUIDORA: Moody's Raises CFR to Caa2; Outlook Pos. --------------------------------------------------------------- Moody's Latin America has upgraded Empresa Distribuidora Norte S.A. (Edenor) Corporate Family Rating and debt ratings to Caa2/Ba2.ar from Caa3/Caa3.ar. The rating outlook is positive. This rating action concludes the review initiated on this issuer on Nov. 4, 2015. RATINGS RATIONALE The upgrade takes into consideration the the ratification of a number of supportive measures announced by the new government in addition to some positive measures taken by the former administration towards the federally regulated electric utilities. Those measures included Resolution 32/2015 wherein the former Energy Secretariat in March last year took steps that produced significantly better margins for the company during 2015, through the transfer of cash funds by the government instead of an increase in tariffs paid by consumers. For the nine months ended September 30, 2015, Edenor received funds from the government for an amount of ARS 3.8 billion . Those funds allowed Edenor not only to cover its increased operating costs but also to make regular payments to Cammesa for the energy it acquired to distribute to its customers. Before Resolution 32, Edenor was not able to cover its operating costs or pay the monthly bill from Commesa for the electricity delivered. On Jan. 28, 2016, the newly created Ministry of Energy and Mining (ME&M) that replaced the former Energy Secretariat, enacted Resolution 7/2016 which basically incorporates the funds previously provided by Resolution 32 into higher tariffs to be paid by consumers, therefore eliminating the transfer of funds from the government to all federally regulated distribution companies and establishing a more reasonable tariff regime where consumers (instead of the government) pay for their electricity consumption. Resolution 7 also eliminates many of the other intricate mechanisms that were put in place by the former administration to provide distribution companies with some financial relief given their unwillingness to make any tariff adjustment despite the steady erosion of cash flows and operating margins that were exacerbated by high rates of inflation. The last tariff increase for distribution companies goes back as far as 2006. Resolution 7 also revokes the PUREE (program for the rational use of energy that penalized higher levels of electricity consumption), and the FOCEDE trust (fixed amount charged to consumers allotted to investments in the electricity network) and others. All of these charges presumably will be included into the new tariff design. In spite of this clearly positive industry development, a considerable amount of uncertainty remains in place, which constrains the ratings. However, Resolution 7 states that distribution companies and the regulator (Ente Narional Regulador de la Electricidad or ENRE) should agree on a mechanism for the companies to repay the amounts owed to Cammesa. Edenor's debt with Cammesa as of September amounted to approximately ARS 3.0 billion and depending upon the terms and tenor of the repayment schedule of that debt, cash flows could be substantially impacted. Also, Resolution 7 along with the Energy Emergency decree from December 1015, require the distribution companies to improve efficiency and service quality, which will require investments significantly above recent capital expenditure levels, which will create additional pressure on Edenor's future cash flow generation. ME&M not only increased the tariff for distribution companies but also significantly increased electricity prices through Resolution 6/2016 as of January 27, which will likely result in higher provisions for bad accounts, and amplify the pressure on cash flows from increased energy losses which will be now accounted for at much higher prices. The combination of higher energy prices and a higher distribution margin will undoubtedly result in a substantially higher electricity bill for most consumers which will likely result in a decrease electticity consumption, with an overall uncertain impact on Edenor's future profitability. Nevertheless, the positive outlook acknowledges that the recent measures taken by the regulatory authorities are directed towards returning the industry eventually to a state of normalization: more realistic prices for the energy produced and the cost of distributing that electricity which will be reflected in the monthly energy bills that consumers will pay coupled with the progressive cut to distorting subsidies of the past administration. The positive outlook also considers that Resolution 7 sets a date certain -end of the year- to complete the long waited integral tariff review (RTI) that will set the basis for the regulatory regime and tariff reviews going forward. Liquidity Profile Considering Edenor's improved cash generation from the increased tariffs and a comfortable debt maturity profile which primarily corresponds to the USD 180 million notes, due 2022, excluding the indebtedness payable to Cammesa, Moody's sees the company's current liquidity as adequate. Moody's notes however that Edenor's debt outstanding is denominated in USD dollars and the company does not generate any foreign currency. Moody's do not expect that a new tariff regime will include any coverage of foreign exchange exposure and, therefore. it will remain a significant credit risk. On the other hand, we also note that Edenor had historically good access to the capital markets, both locally and internationally. Fortunately, this USD debt does not need to be refinanced until 2022 which provides sufficient time for the current administration to establish an appropriate regulatory framework and tariff review track record that enables to company to readily access the capital markets once again. RATING OUTLOOK The positive rating outlook incorporates our view that recent developments will positively impact on Edenor's cash flows and credit metrics and that the expected year-end review of the industry regulations and tariff schedules will be supportive for the company. WHAT COULD CHANGE THE RATING - UP A rating upgrade will require that the recent resolutions and the resulting tariff scheme translates into enhanced margins and operating profits on a consistent basis and cash generation that is sufficient to fund all of the company's cash needs, including the Cammesa repayments and the higher capital investment that will be required to provide adequate service to customers in line with regulatory requirements. Quantitatively, an upgrade would require Edenor to post positive operating income and positive free cash flow along with indications of future regular adjustments of tariffs to incorporate increased costs would also be important consideration for an upgrade of the ratings. WHAT COULD CHANGE THE RATING -- DOWN In light of the positive rating outlook and recent positive announcements for the electricity industry, near-term prospects for the rating to be downgraded are limited. However, if the recent announcements prove to be insufficient for the company to reverse its past operating losses or to improve its cash generation capability, the rating outlook could be stabilized. Empresa Distribuidora Norte S.A (Edenor), headquartered in Buenos Aires, Argentina, is the country's largest electricity distribution company in terms of number of clients and revenues. Edenor is indirectly controlled by Pampa Energia S.A. (not rated), the largest fully integrated electricity company in Argentina. Edenor's direct controlling shareholder, Electricidad Argentina S.A. (EASA), is a wholly indirectly owned subsidiary of Pampa Energia. =========== B R A Z I L =========== BRAZIL: Deficit, Stimulus Show Growth Challenges Says Fitch ----------------------------------------------------------- Brazil's 2015 fiscal results and plans to stimulate the economy highlight the key challenge of stabilizing government debt dynamics during a recession that is continuing in 2016, Fitch Ratings says. The public-sector deficit rose to 10.3% of GDP last year from 6.1% in 2014, central bank data showed. Gross general government debt rose 9pp to 66.2% of GDP. These figures are consistent with Fitch's forecasts when we downgraded Brazil to 'BB+'/Negative in December. 2016 will be another difficult year for public finances. The government has yet to implement measures that would allow it to achieve its target of a public-sector primary surplus of 0.5% of GDP, from last year's deficit of almost 2%, and neither the economic nor the political environment are conducive to faster fiscal consolidation. "We forecast real GDP to contract by 2.5% this year, and downside risks from external factors, including low commodity prices, China's slowdown and external financial volatility, persist. Depressed domestic confidence, rising unemployment and political and policy uncertainties are hurting domestic demand. Impeachment proceedings add to political uncertainty about the government's ability to legislate for measures to meet its primary surplus target. Consequently, we believe that debt-to-GDP will continue to rise during the next two years, exceeding 70% in 2016." Pressure to dilute austerity amid rising unemployment and economic contraction may also constrain consolidation. The government's BRL83bn ($US20bn) credit stimulus announced does not change our fiscal projections, as the Treasury is not making additional transfers to Banco Nacional de Desenvolvimento Economico e Social, the Brazilian development bank. "We doubt the recently announced credit stimulus will materially improve Brazil's growth outlook by boosting lending while the recession keeps borrowers' demand for credit and banks' risk appetite low. Previous public credit expansions have yielded limited growth in dividends, and attempts at publicly-directed lending may even undermine economic confidence." The Brazilian central bank decided to hold its benchmark rate at 14.25% on 20 January, partly reflecting its concerns about the downside risks to growth, which could however mitigate inflationary pressures. The extent to which policy actions might compromise plans to meet fiscal targets or reduce macroeconomic imbalances remains part of our sovereign credit assessment. The Negative Outlook on Brazil's rating reflect the risk that policy drift, fiscal slippage, and/or a deeper and longer recession put more pressure on government debt dynamics. Effective fiscal consolidation, a recovery in growth and investment, and a political climate more conducive to structural reform would be credit positive. BRAZIL: Olympic Costs Up Another $100 Million on Electric Bills --------------------------------------------------------------- Sabrina Valle at Bloomberg News reports that the price-tag for staging the 2016 Olympic Games in Rio de Janeiro has risen another $100 million, reflecting the cost of electricity generation, according to details announced by the organizing committee. The event's estimated costs have reached BRL39.07 billion ($9.8 billion), Globo newspaper said, according to Bloomberg News. Security at Olympic sites, to be provided by the federal government, is still excluded from the total figure and would raise public costs even further, the paper said, Bloomberg News relays. Sixty percent of the costs for arenas and sites only built for the event, including electricity generators, will come from the private sector, the paper reported, citing Rio Mayor Eduardo Paes. City, state and federal government will share the other 40 percent, Bloomberg News notes. Bloomberg News says that games organizers reversed course in December after first saying that some 10,500 athletes may be charged for the cost of air conditioning their bedrooms in the Olympic Village. The update on potential Olympic costs come at a time of a deteriorating fiscal outlook for Brazil, as Latin America's largest economy heads toward the deepest recession in a century, Bloomberg News notes. Brazil's currency, the real, plunged 33 percent in 2015, the most among the world's 16 most-traded currencies, Bloomberg News discloses. The opening ceremony of the Summer Olympics will take place on Aug. 5. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2015, Fitch Ratings has downgraded Brazil's ratings: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB-', Outlook remains Negative; -- Senior unsecured foreign and local currency bonds to 'BB+' from 'BBB-'; -- Short-term foreign currency IDR to 'B' from 'F3'. OAS GROUP: Brookfield Asset Withdraws Offer to Buy Invepar Stake ---------------------------------------------------------------- Guillermo Parra-Bernal and Tatiana Bautzer at Reuters report that Brookfield Asset Management Inc. has withdrawn an offer to buy the 24.4 percent stake in Infrastructure Company Invepar held by Brazil's Grupo OAS SA because Brookfield would not have full management control of the company, two sources with direct knowledge of the situation said. Brookfield failed to reach an agreement with OAS's partners in Invepar, pension funds Previ, Petros and Funcef, over management control of the firm, said the sources, who requested anonymity because of the sensitivity of the issue, according to Reuters. The report notes that the sale of the stake was key to help OAS emerge from bankruptcy protection proceedings, days after a Brazilian judge approved a recovery plan. Brookfield had offered to pay BRL1.35 billion ($340.83 million) for the stake in Invepar, the report relays. As reported in the Troubled Company Reporter-Latin America on Feb. 1, 2016, Reuters said a Brazilian bankruptcy court upheld a restructuring plan for embattled engineering conglomerate OAS Group, paving the way for a slew of asset sales aimed at helping pay over BRL8 billion ($2 billion) in liabilities. USINAS SIDERURGICAS: Sticks With Plan to Cut 4,000 Jobs at Mill --------------------------------------------------------------- Guillermo Parra-Bernal at Reuters reports that Usinas Siderurgicas de Minas Gerais SA, one of Brazil's largest producers of flat steel, upheld a plan to halt steel production at its Cubatao mill, which will mean dismissal of about 4,000 workers, union leaders said. The STISMMMEC union, which represents steelmakers around Cubatao, said a meeting between workers, prosecutors and the company known as Usiminas did not yield any agreement, according to Reuters. According to Florencio Rezende de Sa, the union's president, the dismissals will take place through March 15, the report notes. The union says that some 4,000 jobs will be lost. In a statement, Usiminas said that 2,000 jobs directly related to the work at the plant would be cut, without saying how many indirect positions would be lost as part of the decision, the report discloses. The layoff plan presented to workers includes benefits that are in excess of those mandated by the law, the company added, the report relays. Usiminas, which is closing steel production activities in Cubatao but maintaining rolled-steel operations, has cited weak prices and poor demand in Brazil among the reasons behind the mill's shutdown, the report notes. The outlook for Brazil's steel industry this year looks "extremely challenging" and is shaping up to turn out to be worse than expected, JPMorgan analysts led by Rodolfo Angele said in a client note, the report relays. As reported in the Troubled Company Reporter-Latin America on Jan. 29, 2016, Moody's America Latina downgraded Usinas Siderurgicas de Minas Gerais S.A. corporate family ratings to Caa1 from B2 (global scale) and to Caa1.br from Ba2.br (national scale). The ratings remain on review for downgrade. ========================== C A Y M A N I S L A N D S ========================== CATALIX CAPITAL: Members Receive Wind-Up Report ----------------------------------------------- The members of Catalix Capital Partners SPC received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 COPELLA INVESTMENT: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Copella Investment Management (Cayman) Limited received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 COPELLA MASTER: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Copella Master Fund SPC received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 COPELLA OFFSHORE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Copella Offshore Fund SPC received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 CQS CAPITAL: Members Receive Wind-Up Report ------------------------------------------- The members of CQS Capital Structure Arbitrage Master Fund Limited received on Jan. 8, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CQS SELECT FEEDER: Members Receive Wind-Up Report ------------------------------------------------- The members of CQS Select ABS Feeder Fund Limited received on Jan. 8, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CQS SELECT MASTER: Members Receive Wind-Up Report ------------------------------------------------- The members of CQS Select ABS Master Fund Limited received on Jan. 8, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CRYSTAL FUND: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Crystal Fund, Ltd. received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 MCGRAW-HILL: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of Mcgraw-Hill (Cayman) Limited received on Jan. 19, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fides Limited c/o Dwight Dube The Grand Pavilion, 2nd Floor Commercial Centre P.O. Box 10338 Grand Cayman Cayman Islands KY1-1003 Telephone: (345) 949 7232 NEOTERIC LIMITED: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Neoteric Limited received on Jan. 11, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Martin Smith Harneys Services (Cayman) Limited Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands Telephone: +971 (0)56 115 0726 PERSISTENT EDGE: Members Receive Wind-Up Report ----------------------------------------------- The members of Persistent Edge Asia U Fund Ltd. received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 PINK GINGER: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of Pink Ginger Ltd. received on Dec. 30, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Justin Savage Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PRIVATE EQUITY: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Private Equity Holding Cayman received on Jan. 4, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Ltd. c/o Lisa Thoppil Telephone: (345) 949 0880 Facsimile: (345) 949 0881 One Capital Place, 4th Floor P.O. Box 847, George Town Grand Cayman, KY1-1103 Cayman Islands PROYA INTERNATIONAL: Members Receive Wind-Up Report --------------------------------------------------- The members of Proya International Corporation received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cao Liangguo c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands SAB OVERSEAS VI: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Sab Overseas Holdings VI, Limited received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta P.O. Box 2681 Grand Cayman, KY1-1111 Cayman Islands Telephone: (345) 814 7765 Facsimile: (345) 945 3902 SAB OVERSEAS VII: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Sab Overseas Holdings VII, Limited received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta P.O. Box 2681 Grand Cayman, KY1-1111 Cayman Islands Telephone: (345) 814 7765 Facsimile: (345) 945 3902 TFO POOLING I: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of TFO Pooling I, Ltd. received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes TFO Manager Limited c/o Jo-Anne Maher Telephone: (345) 814 9255 Facsimile: (345) 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands VALORA INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------- The members of Valora Investment Fund SPC received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 =========== M E X I C O =========== COBRE DEL MAYO: Fitch Cuts Issuer Default Rating to 'RD' -------------------------------------------------------- Fitch Ratings has downgraded Cobre del Mayo S.A. de C.V. (CdM) ratings as follows: -- Local currency Long term Issuer Default Rating (IDR) to Restricted Default 'RD' from 'C'; -- Foreign currency Long term IDR to 'RD' from 'C'; -- Senior unsecured 10.75% notes due 2018 to 'RD' from 'C/RR4' and simultaneously withdraw; -- Long Term National Scale Rating to 'RD(mex)' from 'C(mex)'. Fitch's downgrade reflects the CdM's announcement of the successful completion of the exchange offer, which Fitch considers as a distressed debt exchange (DDE). Holders of approximately 95% of the US$217 million senior notes due 2018 elected to participate in the exchange. These holders will receive US$113.2 million of new subordinated PIK notes due 2021. The exchange results in a recovery of approximately 52% of the principal for holders that elected to tender their old bonds. Fitch has simultaneously taken various rating actions to reflect CdM's post-exchange capital structure and the fundamental outlook of the company: -- Local currency Long term IDR to 'CC from 'RD'; -- Foreign currency Long term IDR to 'CC' from 'RD'; -- Long Term National Scale Rating to 'CC(mex)' from 'RD(mex)'. KEY RATING DRIVERS CdM's 'CC' IDRs reflect the successful debt exchange, which has relieved cash flow pressure stemming from high debt service requirements at a time when copper prices are below CdM's marginal production cost. The company's new capital structure will allow for the new PIK notes to be deeply subordinated with the coupon payment being linked to the copper price. Interest payments will not begin until the copper price recovers to $2.50/lb. Fitch expects copper prices of around $2.17/lb in 2016 and $2.35/lb in 2017. With these prices, CdM is expected to generate low EBITDA of around $US 3 million in 2016, improving to approximately $US 35 million in 2017 following the successful execution of the revised plan for the Piedras Verdes mine. Fitch expects that if copper prices remain at current levels of around $2/lb for a prolonged period, the mine may be placed under care and maintenance until a sustained price recovery occurs. The ratings continue to reflect CdM's elevated production cost position in relation to current copper prices. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for CdM include: -- Copper price of $2.17/lb in 2016; -- C1 cash cost of around $2/lb during 2016; -- Copper cathodes sold of approximately 23,000-24,000 tonnes in 2016. RATING SENSITIVITIES Fitch's base case indicates that CdM will likely experience a continued challenging operating scenario during 2016 due to its third-quartile cost of production combined with a period of low copper prices. A ratings upgrade is considered unlikely during the next 18 to 24 months. LIQUIDITY Fitch's base case indicates cash and cash equivalents of between $US 3 million to $US 5 million in 2016. This amount assumes a deferral of royalty payments until 2017 and amortisations relating to capital leases. In addition, under the current indentures, the company has access to a new Super Senior Facility of $US 50 million. Financial support from shareholders is no longer assumed. Other debt held by the company mainly relates to related parties and operating leases that rank senior to the new PIK notes. Fitch downgrades the following Cobre del Mayo S.A. de C.V. -- Local currency Issuer Default Rating (IDR) to Restricted Default 'RD' from 'C'; -- Foreign currency IDR to 'RD' from 'C'; -- Senior unsecured 10.75% notes due 2018 to 'RD' from 'C/RR4' and simultaneously withdraw; -- Long-Term National Scale Rating to 'RD(mex)' from 'C(mex)'. Fitch upgrades the following to reflect CdM's post-exchange capital structure and the fundamental outlook of the company: -- Local currency IDR to 'CC from 'RD'; -- Foreign currency IDR to 'CC' from 'RD'; -- Long Term National Scale Rating to 'CC(mex)' from 'RD(mex)'. CONTROLADORA MABE: Fitch Affirms 'BB+' Issuer Default Ratings ------------------------------------------------------------- Fitch Ratings has affirmed Controladora Mabe, S.A. de C.V.'s (Mabe) issuer default ratings at 'BB+'. The Rating Outlook has been revised to Positive from Stable. The revision of the Outlook to Positive reflects Fitch's expectations of further strengthening of Mabe's credit profile given recent debt repayment and stronger cash flow generation. It also reflects the potential for Mabe to increase business opportunities under a new shareholder structure. Successful integration with the new owner coupled with expanding positive free cash flow (FCF) generation and total leverage around 2.5x throughout the economic cycle would likely lead to an upgrade. Conversely, lower than expected profitability, negative FCF generation and gross leverage in the range of 3x would likely result in the Outlook being revised to Stable. KEY RATING DRIVERS Strong Market Position Mabe holds a strong business position in most of its Latin American markets. The company has nine manufacturing facilities, in Mexico, Ecuador, Colombia and Argentina, which allow it to serve different markets under competitive conditions. Mabe continues to focus on offering a wide product portfolio under a multibrand strategy that targets all socioeconomic levels, in conjunction with the long-term manufacturing and export agreements with General Electric Co. (GE). A Potential New Shareholder In December of 2015, GE announced it had terminated its agreement to sell its appliances business to AB Electrolux (Electrolux). On a subsequent announcement earlier this month, GE announced it had reached an agreement to sell its appliance business to Qingdao Haier Co., Ltd. (Haier), a large home appliance provider based in China. The agreement includes GE's 48.4% stake in Mabe and is expected to face less opposition by U.S. regulatory authorities than the previous transaction with Electrolux mainly due to Haier's limited participation in the U.S. market. The company's ratings have been supported by Mabe's long-term relationship with GE and the agreements the companies have established. Mabe has stated that all of its agreements with GE will be kept once the transaction between GE and Haier closes. It has also stated that this joint venture with Haier could increase its export opportunities to the U.S. by reactivating projects which had stalled during the previous regulatory review process. Fitch believes a potential transaction would be neutral to credit quality in the near term. In Fitch's view, a new partner with a longer-term focus on growing its appliance business globally could result in higher revenues for Mabe considering its manufacturing capacity, low-cost skilled labor force and already established connectivity to GE's U.S. product distribution network benefiting from Mexico's trade agreements with the U.S. and logistics infrastructure which results in lower freight costs and faster delivery times. Higher Cash Flow Generation Fitch believes risks in Mabe's operating environment will balance out during 2016 and the company should continue to post moderately improving results amid a volatile environment. Positive housing dynamics in the U.S. --where the company generates about a third of its revenue--, pricing initiatives in Mexico and Latin America, and a favorable cost environment resulting from lower metals and plastics prices should continue to offset low demand for appliances in South America and weakening foreign currencies in Latin America. Mabe's cash flow profitability measured as funds from operations (FFO) margin has been low since 2010 partly due to multiple restructuring and reorganization expenses related to the company's operations in Brazil as well as the relocation of manufacturing capacity from Canada to Saltillo, Mexico. In addition, weak conditions in Latin America, including the company's operations in Venezuela and Argentina, pressured financial performance. Absent large restructuring charges, Mabe's FFO margin should trend to levels above 5% in 2016 and beyond from around 4% in 2015 and 3% in 2014, supporting leverage and liquidity metric strengthening. KEY ASSUMPTIONS -- Revenues decline low single digits in 2016 reflecting $US strength and resume low-single-digit growth from 2017 onwards. Exports to the U.S. and growing volumes in Mexico and pricing initiatives across Latin America partially offset relatively weak expected demand in South America. -- EBITDA margins remain above 10% over the next few years. -- Debt/EBITDA improves slowly over the medium term mostly due to higher EBITDA generation. -- The company does not undertake meaningful shareholder distributions; FCF remains positive over the intermediate term. -- All agreements with GE are kept once the transaction for GE's appliance business between GE and Haier closes. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a positive rating action include: -- Successful closing of the GE appliances transaction and subsequent integration of Mabe with Haier, coupled with a firm management commitment to maintain total debt-to-EBITDA at or below 2.5x in the mid to long term, positive FCF cash flow generation, stable profitability and solid liquidity. Future developments that may, individually or collectively, lead to a negative rating action include: -- Large debt-financed acquisitions, deterioration in profitability and cash flow generation, competitive and/or input cost pressures resulting in the expectation of gross leverage levels consistently above 3.5x. LIQUIDITY Mabe's liquidity is considered adequate. During the fourth-quarter of 2015 (4Q15), the company refinanced $US 270 million of syndicated bank debt with a $US 300 million new syndicated bank loan. The company used existing cash of $US 95 million as of 3Q15 as well as the incremental borrowing of the new bank loan to repay its $US 69 million 2015 notes. The company faces no material debt amortizations until 2018 and 2019 when $US 92 million and $US 573 million-- including $US 481 million of 2019 notes are due, respectively. Total debt as of 2015 was $US 781 million composed of $US 481 million of notes due 2019 and bank debt. Mabe's EBITDA for 2015 was $US 264 million resulting in total leverage of 3x. FULL LIST OF RATING ACTIONS Fitch has affirmed Mabe's ratings as follows: -- Foreign currency long-term Issuer Default Rating (IDR) at 'BB+'; -- Local currency long-term IDR at 'BB+'; -- 7.875% senior unsecured notes due 2019 at 'BB+'. MEXICO: Fitch Says Oil Drop Will Hurt Locals Less Than 2009 Bust ---------------------------------------------------------------- The recent decline in oil prices will have a smaller impact on Mexican federal transfers to states and local governments than in the past, Fitch Ratings says. Structural changes to the federal funding sources have evolved since the 2009 financial crisis. However, lower tax revenues coinciding with weaker oil revenues could pressure some state and local budgets. The amount of General Sharing Fund (GSF) transfers from the federal government to the states in the current fiscal year is forecast at approximately MXN489.8 trillion. GSF makes up almost three quarters of federal transfers, called Participaciones, to local and state governments. These transfers are the main non- earmarked revenue source for states and locals and they are most often used to service long-term debts. Federal law requires the GSF transfers to be set at 20% of the value of Federal Revenue Shares (FRS). FRS is funded by tax and oil revenues from the federal government. Under the current federal budget forecast, which uses a $US 50 per barrel (pb) oil price, FRS would transfer MXN2.4 trillion to state and local governments. However, the price of oil is sliding well below those forecasts. According to the Energy Information System, Mexican crude oil's average price per barrel fell to nearly $US 20 in mid- January. A similar decline in oil prices preceded the 2009 economic crisis. From 2008 to 2009, the annual average oil price fell from $US 84.4pb to $US 57.4pb. Assuming oil prices don't decline below that level and tax revenues are flat, Fitch expects the amount of GSF transfers to the states and locals to decline by 4.7% from 2015 level (or 8.9% below budget). From 2008 to 2009, GSF transferred 15.7% less from the federal government to states and locals. GSF could be substantially affected if the fall in oil prices is accompanied by a decline in tax revenues. This could require the activation of the States Revenues Stabilization Fund, which backfills the gap between budget and actual revenues. In September 2015, its total was MXN35 billion. The funding sources behind FRS have been changed so that it relies less on oil revenues and more on taxes. In 2008, oil revenues accounted for 44% of the FRS, while in 2015 that share dropped to 12.7%. ======= P E R U ======= INRETAIL CONSUMER: S&P Revises Outlook to Stable & Affirms BB+ CCR ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on InRetail Consumer (IC) to stable from positive. At the same time, S&P affirmed its 'BB+' corporate credit and debt ratings on the company. The outlook revision reflects IC's somewhat weaker-than-expected operating andfinancial results due to a slowing economy in Peru, including lower consumption, which increased competition, and the depreciation of the Peruvian sol, which hurt the company's cash flow generation due to its dollar-denominated debt. However, during the second half of 2015, IC reduced its exposure to the dollar through hedges and partial repurchases of its $300 million senior unsecured notes, which mitigated the latter risk. S&P still expects that about 20% of IC's debt will continue to be exposed to the dollar in 2016, which makes the company more vulnerable than investment-grade companies that are fully hedged or have lower or no exposure to the dollar, especially considering our expectations of a further depreciation on the sol during the year. Nevertheless, S&P expects that IC will strengthen its EBITDA and cash flow generation in 2016 thanks to its solid market position, a stable same store sales (SSS) growth, and competitive cost structure, which it can adjust. Therefore, S&P expects IC's credit metrics will slightly improve, posting an average of debt to EBITDA below 3x and FFO to debt slightly above 20% during the next two years. The rating on the $300 million senior unsecured notes (outstanding $180.5 million as of Sept. 30, 2015) is the same as the corporate credit rating on IC, given that InkaFarma and Supermercados Peruanos-SPSA, which represent 100% of IC's EBITDA, guarantee the notes. Therefore, the notes are pari passu with the rest of the company's liabilities. Despite IC's exposure to the dollar, S&P believes the long term nature of its notes mitigates this risk. Although excluded from our base-case scenario, S&P don't discard the possibility of additional hedging strategies or further repurchases of its notes under more stressed economic conditions. "Despite Peru's more challenging economy we expect in 2016, our business risk profile assessment on IC reflects its solid market position, which should maintain its sound bargaining power with suppliers, successful merchandising strategy of low prices-- despite possible pressures during the year due to high competition, especially in its pharmacy segment through InkaFarma--favorable store locations, and brand positioning. We expect IC to maintain an adequate working capital management and cost structure, as seen in its gross margin of about 30% and expenses slightly above 20% as a proportion of total sales. Mitigating factors are our expectations that IC's operations will continue to be concentrated in the highly fragmented and competitive retail industry in Peru, although supermarkets and pharmacies are more resilient in the overall retail industry due to their non-discretionary nature," S&P said. S&P's financial risk profile assessment reflects its expectations that IC will be able to maintain FFO to debt above 20%, despite its expectation of the sol's further depreciation, thanks to the company's lower exposure to the dollar and its ability to fund most of its capital requirements and expansion program with its own cash flow generation and, to a lesser extent, with debt. S&P views IC as a core subsidiary for InRetail Peru Corp. (IPC) because S&P believes the former is a key long-term asset for its parent, and its strategies and operations are very much aligned with the latter. Also, S&P believes IC is unlikely to be sold because it contributes more than 60% of IPC's EBITDA. S&P's base-case scenario includes these assumptions: -- Peru's GDP growth of 3.5% in 2016 and 4.0% in 2017, compared with S&P's expectations of a 2.5% growth in 2015. These rates will support the consumption in the country which, along with IC's resilient nature and solid market position, will continue bolstering its sales. -- Peruvian consumer price index growth near 3% in 2016 and 2017, down from a 4.4% growth in 2015. Although S&P don't discard higher inflation rates due to the volatility in the markets, S&P don't believe they will reach a peak of 7% in 2008. Therefore, S&P expects household wealth to remain relatively stable, which will support IC's sales especially due to its resilient nature. -- Supermarkets will continue to be more resilient than department stores, although with a lower growth pace. S&P expects the company's pharmacy segment to be even more resilient due to its non-discretionary nature, which already benefits from IC's strong position in that segment. -- SPSA's revenues, which represents about 65% of total, will grow between 9% and 10% in 2016 and 2017 due to new openings with favorable locations and further benefits from the company's remodeling program. S&P expects this division to open about 10 stores in 2015 and the following two years. -- InkaFarma's revenues, representing about 35% of total, will grow about 10.5% on average in 2015, 2016, and 2017, amid the slowing of pharmacies' openings to 50-80 stores in 2016 and 2017 from about 100 S&P expects in 2015. -- IC's revenue growth will be between 9% and 11% in the next two years. -- EBITDA will improve in 2016 thanks to the good coordination with suppliers of SPSA, which represents about 55% of total EBITDA, and S&P's expectations that this division will continue improving its inventory days. S&P expects InkaFarma's, representing about 45% of total EBITDA, solid market position--despite a higher competition in private- label product offerings that are more profitable--will allow the company to continue benefitting from these products. -- SSS growth slightly below the GDP growth pace in real terms in the next two years. -- Working capital inflows of about PEN45 million in 2016 and 2017, due to higher accounts payable and improved inventory rotation, resulting from the company's efforts to optimize its operations. -- Capex averaging PEN350 million in 2016 and 2017, versus S&P's expectations of about PEN300 million in 2015, to fund IC's expansion program. -- Debt service payments through dividend payments from InkaFarma, due to the latter's low capex needs and, consequently, high cash flow available. -- No acquisitions. Based on the above assumptions S&P arrives to these credit metrics for 2015, 2016 and 2017: -- EBITDA margins near 8%, reaching 8.5% by 2017; -- Debt to EBITDA below 3x on average; -- FFO to debt of slightly below 20% in 2015 and about 23% on average in the following two years; -- EBITDA interest coverage of 3.5x in 2015 and almost 4x on average in 2016 and 2017; and -- Negative discretionary cash flow to debt of almost 4% in 2015 and 2016, and positive 0.2% in 2017. ====================== P U E R T O R I C O ====================== PUERTO RICO: Faces Prospect of Financial Control Board ------------------------------------------------------ Kasia Klimasinska and Kathleen Miller at Bloomberg News report that Puerto Rico has been anxious for Congress to address its $70 billion debt crisis, but the island's leaders may not be as happy with the potential outcome as the investors holding its securities. Driving the process are Republicans, who control both chambers and say the island has proved it's not able to manage its finances and needs an external authority to ensure it cuts expenses and deficits, according to Bloomberg News. Democrats, essential to passing a bill in the Senate, insist on giving Puerto Rico access to an orderly, court-supervised process allowing it to cut its debt, Bloomberg News notes. "What may pass may be a mixture of both, possibly a control board with some sort of restructuring access, some leeway in allowing them to restructure some of their debt," said Shaun Burgess, a portfolio manager at Cumberland Advisors Inc. in Sarasota, Florida, Bloomberg News relates. "The island needs some real management and structural help and not just the ability to cram down or restructure their debt," he added. Officials in Puerto Rico released details of its proposal to bondholders under which its debt burden would be reduced by 46 percent under a bond exchange, Bloomberg News notes. That would entail reducing its tax-supported debt from $49.2 billion to $26.5 billion, with annual debt payments capped at 15 percent of government revenue, Bloomberg News says. Bloomberg News discloses that House Republicans are holding a hearing to explore the case for setting up a Puerto Rico financial control authority. One witness scheduled to testify is Anthony A. Williams, a former mayor of Washington, D.C., who also served as an independent chief financial officer of the city when it was overseen by a financial control board established by Congress. 'Checks and Balances' Mr. Williams said in an interview with Bloomberg News that Puerto Rico would benefit from long-term, transparent financial planning and that he favors a control board made of people who know and care about Puerto Rico, including people who've lived on the island. "Obviously, checks and balances are good," said Mr. Williams, a senior adviser at Dentons U.S. LLP. "I think it would serve the commonwealth well," he added, notes the report. Bloomberg News relays that some Senate Democrats have suggested using an energy bill currently being debated on the Senate floor, S. 2012, as a vehicle for legislation to help Puerto Rico, but it's not clear there is enough consensus on what, exactly, should be done. Senate Republicans led by Orrin Hatch, a Utah Republican who chairs the Finance Committee, proposed a bill, S. 2381, last year that would create a control authority but didn't include any restructuring, Bloomberg News notes. That proposal was criticized by the island's non-voting House delegate, Democrat Pedro Pierluisi, who called the oversight authority plan a "mega-board on steroids," Bloomberg News relays. Still, investors favor Hatch's proposal, said Mr. Burgess, who helps manage $2.45 billion in assets, including $100 million of the island's insured debt, Bloomberg News notes. "I like that the bill creates an outside authority that is in a position to help the island create and, most importantly, stick to a budget," the report quoted Mr. Burgess as saying. "One of the island's problems has been kind of management in itself," Mr. Burgess added. Skeptical of Bankruptcy Bloomberg News notes that Mr. Hatch is among the Republicans resisting Democrats' call to allow Puerto Rico to use Chapter 9 of the bankruptcy code. Granting the island access to Chapter 9 would let some of its corporations, such as the power utility or water agency, enter a court-overseen restructuring process, Bloomberg News relays. Mr. Hatch said Congress needs instead to find "a whole new procedure" for adjusting Puerto Rico's obligations. Extending Chapter 9 to Puerto Rico is also opposed by Republicans on the Senate Judiciary Committee, which oversees changes to bankruptcy law, notes the report. "I don't want this to be an extension of Chapter 9 -- that's for municipalities and that's a bad precedent to set," Senator David Perdue from Georgia said in an interview with Bloomberg News. "We need to protect the creditors and protect Puerto Rico's borrowing capability long term, those are the two objectives that I have." House Speaker Paul Ryan, a Wisconsin Republican, and Treasury Secretary Jacob J. Lew have been pressing lawmakers to find a solution by the end of the first quarter, Bloomberg News notes. Puerto Rico's Government Development Bank owes investors $422 million in May and the commonwealth and its agencies need to pay back $2 billion on July 1, on the heels of an anticipated $923 million negative cash balance in June, Bloomberg News relays. Governor Alejandro Garcia Padilla delayed tax rebates and payments to suppliers to pay creditors and began closing about 100 schools to help balance the fiscal 2015 budget, Bloomberg News discloses. The island defaulted on some payments in January and last year, Bloomberg News relays. No draft of a bill with any compromise has been released yet. "We have a lot of discussion about what to do and as long as it doesn't involve the use of federal tax dollars, I think it is something we ought to try to figure out some way forward on," Senate Majority Leader Mitch McConnell of Kentucky told reporters, says Bloomberg News. "Exactly what the way forward is at this point, I'm not sure. But we certainly agree that it's a big problem and we need to see what role, if any, we should play in it." As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2015, Moody's Investors Service has downgraded $1.09 billion of Puerto Rico appropriation bonds issued by the Public Finance Corporation (PFC) to C from Ca, while maintaining other ratings assigned to the US territory's debt. SPANISH BROADCASTING: BlackRock Holds 5.2% of Class A Shares ------------------------------------------------------------ In an amended Schedule 13G filed with the Securities and Exchange Commission, BlackRock, Inc. disclosed that as of Dec. 31, 2015, it beneficially owns 216,930 shares of Class A common stock of Spanish Broadcasting, Inc., representing 5.2 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/tjcxsQ About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. Spanish Broadcasting reported a net loss of $20.0 million on $146 million of net revenue for the year ended Dec. 31, 2014, compared with a net loss of $88.6 million on $154 million of net revenue in 2013. As of Sept. 30, 2015, the Company had $457 million in total assets, $551 million in total liabilities and a total stockholders' deficit of $94 million. * * * In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. In July 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Miami, Fla.-based Spanish Broadcasting System Inc. to 'B-' from 'CCC+', based on continued improvement in the company's liquidity position. The rating outlook is stable. "The rating action reflects S&P's expectation that, despite very high leverage, SBS will have adequate liquidity over the intermediate term to meet debt maturities, potential swap settlements, and operating needs until its term loan matures on June 11, 2012," said Standard & Poor's credit analyst Michael Altberg. ============= U R U G U A Y ============= ACI AIRPORT: S&P Affirms 'BB+' Rating; Outlook Remains Stable ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' issue-level rating on ACI Airport Sudamerica S.A. Outlook remains stable. The rating reflects S&P's expectation that the project will maintain adequate operating and financial performance during the remaining term of the notes. The projected minimum and average DSCRs of 1.20x and 2.08x, respectively, reflect ACI's strong performance. Particularly, the minimum DSCR metric is projected for 2018, during which the project would need to make its first tax payment and highest debt service payment. ACI currently defers taxes. S&P's 'BB+' rating on ACI also reflects these strengths: -- Solid traffic performance and fundamentals, as seen in the airport's international traffic and revenue growth of 7.2% and 5.8%, respectively, in the first nine months of 2015; -- Good traffic growth prospects for the next two-three years, in line with expectations for the Uruguayan economy, with which traffic growth correlates, together with new routes and additional frequencies expected for the upcoming few years; and -- A successful track record of more than 10 years of operations. These are the mitigating factors: -- The airport's dependence on traffic growth to generate cash flows; -- ACI's notes are structurally subordinated to PdS's senior notes. Given that the latter's notes' cash flow waterfall doesn't prioritize the expenses necessary to maintain operation before any other use of cash flows (debt service payment is ahead of operating expenses), S&P assess its waterfall score as negative, which lowers the project's stand-alone credit profile (SACP) by two notches. ================= X X X X X X X X X ================= YAHOO! INC: Shutting Offices in Mexico, Argentina to Trim Costs ---------------------------------------------------------- Brian Womack at Bloomberg News reports that Yahoo! Inc. is shutting down two offices in Latin America, seeking to trim costs by scaling back some international operations. The Web portal will close sites in Mexico and Argentina, while keeping open offices in Brazil and Florida, according to a statement obtained by Bloomberg News. The number of employees affected wasn't disclosed, though the company said the offices are small, Bloomberg News notes. "Yahoo is focused on maximizing growth," the Sunnyvale, California-based company said, Bloomberg News relays. "Latin America is an important region for Yahoo and we will continue to invest in the people and products there," the company added. Bloomberg News notes that after more than three years of unsuccessful efforts to revive growth, sales remain in a slump, and pressure is mounting on Chief Executive Officer Marissa Mayer. The CEO is set to unveil a new plan to streamline the company's operations by this week -- one that's likely to include job cuts, a person familiar with the matter said earlier this month, Bloomberg News relays. Yahoo was scheduled to report fourth-quarter earnings on Feb. 2. Analysts estimate that revenue, minus sales passed on to partners, declined 20 percent to $948.2 million, Bloomberg News adds. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *